EANS-News: Balda AG / Balda AG sets the course for Group profitability

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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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6-month report

Bad Oeynhausen (euro adhoc) - Balda AG sets the course for Group
profitability

Balda no longer listing the MobileCom segment in the continued
business divisions / majority shareholding in the MobileCom segment
set for takeover by Joint Venture partner / positive operating profit
in the continued business divisions / sale of the TPK shares yet to
commence

Bad Oeynhausen, 4th August 2011 - Balda AG, listed on the Frankfurt
Stock Exchange, is in the midst of a vital decision-making phase. The
Sole Director, Rainer Mohr, announced in a telephone conference in
front of the press on the occasion of the publication of the report
for the first half of 2011, that the "Balda Group has set the course
for a profitable Group structure, although the process is yet to be
completed".

Profitable operative basis Balda is assuming that it will lose
control of the MobileCom segment within the framework of its search
for a Joint Venture partner. In this way Balda will eliminate its
loss maker in the immediate future. The break-even point had
previously been reached by the Group in the two existing segments
comprising the continued operations, and was exceeded in the first
half of 2011 with consolidated operating Group profits of 1.1 million
Euros attained by the Electronic Products and Medical segments. Mohr
is convinced that the Group's active operational segments constitute
an excellent basis for further growth. The prerequisites for the
establishment of a new Group structure have now been met, according
to the Sole Director.

Planned acquisition Mohr went further on the intended acquisition:
"We are on target. The prerequisites for a possible acquisition are
in place. We will be providing information on further developments
promptly."

Planned sale of TPK shares With respect to the planned sale of the
TPK shares Mohr asserted: "Balda AG has been cooperating on an
ongoing basis with banks, consultants and TPK in this regard.
However, we have not yet commenced the issuing of a formal
notification of sale of the TPK shares, as required by the Taiwanese
Stock Exchange." In light of the recently volatile market conditions
with severe stock price fluctuations, Balda intends to act to protect
the interests of its shareholders in selling at a favourable share
price to preserve value. "As a result of this, a definitive sale date
for the TPK shares cannot be specified in the opinion of the Board of
Directors and the Supervisory Board of Balda AG. However, the
management of Balda AG is constantly assessing the market conditions
and the resultant options" stated Mohr.

In this context, the Board of Directors once again reiterated that
the Balda Group is almost entirely debt-free and, with liquid funds
of 42.3 million Euros, has an above-average solid financial base. "We
are able to look with confidence to the future" emphasised Mohr.

* * *

Company Profile Balda AG The Balda Group develops and produces
complete plastic assemblies, electronic products and products for the
medical industry. The customers of Balda are leaders in business from
the mobile, entertainment and electronic communications as well as
pharmaceutical and medical technology markets. The group has an
international position with product sites in China, Malaysia and
Germany. A subsidiary in the United States serves North American
customers in product design and development. As part of a
shareholding in a leading manufacturer of touch screens in China,
Balda participates in the dynamic touch screen displays market.

* * *

Further inquiry note: Balda AG, Clas Röhl, Tel: (05734) 922 - 2728,
Fax: (05734) 922 - 2604, E-Mail: croehl@balda.de, Internet:
www.balda.de

* * *

This corporate news announcement contains forward-looking statements,
which are based on the current expectations of Balda´s management.
They therefore contain a range of risks and uncertainties because
they relate to future events and depend on circumstances that will
occur in the future, such as, for example, developments in the mobile
communications industry, changes in technology and the ability to
timely and successfully develop new products and various other
factors. Balda will neither revise these forward-looking statements
nor correct them in the event of any unexpected development, unless
there is a legal obligation to do so.

This corporate news announcement represents neither an offer to buy
shares nor an invitation to submit an offer to buy shares in the
United States or any other country. The shares in Balda AG (the
"shares") may not be offered or sold in the United States or to or
for the account of U.S. persons (as defined in Regulation S of the
U.S. Securities Act of 1933, in its current version (the "Securities
Act")), unless they are registered or are exempt from registration
under the Securities Act. The shares have not been and will not be
registered under the Securities Act.

Further inquiry note:
Clas Röhl
Tel.: +49 (0) 5734 922-2728
croehl@balda.de

end of announcement euro adhoc
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company: Balda AG
Bergkirchener Str. 228
D-32549 Bad Oeynhausen
phone: +49 (0) 5734 9 22-0
FAX: +49 (0) 5734 922-2747
mail: info@balda.de
WWW: http://www.balda.de
sector: Semiconductors & active components
ISIN: DE0005215107
indexes: CDAX, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English